This should get you pretty close to it I think. You're looking to populate attributes of an element, which all get prefixed with @ when you name them.
SET @AcuteCare = (
SELECT
5 as '@version',
'database' as '@type',
DBName AS server,
'True' AS integratedSecurity,
15 AS connectionTimeout,
-1 AS protocol,
4096 AS packetSize,
'False' AS encrypted,
'True' AS selected,
DBName AS cserver
FROM dbo.Instances
WHERE dbname LIKE 'mavscm%db003p'
ORDER BY DBName
FOR XML RAW('value'), ROOT('AcuteCare'), TYPE, ELEMENTS
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Your lack of planning does not constitute an emergency on my part...unless you're my manager...or a director and above...or a really loud-spoken end-user..All right - what was my emergency again?